Everest Re Group Ltd.
) has formed Mt. Logan Re, Ltd., a special-purpose insurance
vehicle, creating additional reinsurance capacity for the
aggregate retrocessional reinsurance market.
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While Everest Re has capitalized the new unit with $50 million,
$200 million will be contributed by the investors to reach the
initial target capacity of $250 million.
The formation of Mt. Logan Re, Ltd. will increase Everest Re's
reinsurance capacity to cater to the global retrocessional
reinsurance market. Retrocessional reinsurance refers to partial
underwriting of the reinsurance risk of one reinsurance company
This new special purpose insurance vehicle will help Everest Re
meet its clients' capital requirement. The company will also
facilitate the participation of investors in the retrocessional
Everest Re Group is a worldwide multi-line reinsurance and
insurance organization with a strong brand recognition,
experienced management team and Board of Directors. It also
benefits from a diversified book of business -
Reinsurance/Insurance; Property/Casualty; U.S./Non U.S.
Earlier during the month, peer
RenaissanceRe Holdings Ltd.
) announced the formation of Upsilon Reinsurance II Ltd.
("Upsilon Re II"), a new Bermuda domiciled special purpose
insurance vehicle, creating additional reinsurance capacity for
the worldwide aggregate retrocessional reinsurance market.
), is also active in collateralized markets.
Everest Re is scheduled to release its fourth-quarter 2012
earnings after trading closes on February 6, 2013. The Zacks
Consensus Estimate is projected at 32 cents per share compared
with an operating loss of 94 cents per share, reported in the
Everest Re retains a Zacks Rank #3 (Hold). We are also
maintaining our long-term Neutral recommendation on its shares.